T3e report e,amines t3e present situation o1 A0anta Pac'ain an2 t3e rot3 prospects o1 t3e company consi2erin t3e rot3 in pac'ain in2ustry4 T3e report also analysis t3e option to time to ta'e up 2i-ersi1ication o1 company5s pro2uct rane it3 a ne pro2uct port1olio o1 P+T /ottles /ase2 on t3e mar'et s3are6 rot3 prospects an2 pac'ain tren2s4 7ecommen2ation is i-en a1ter stu2yin t3e current position an2 -arious rot3 opportunities an2 action plan 1or t3e same is pro-i2e24
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Execti!e "mmar# Ta'in into consi2eration t3e e-er c3anin picture o1 pac'ain in2ustry6 it 3as /ecome e,tremely important to pon2er upon t3e 1uture course o1 action 1or A0anta Pac'ain4 T3e company 3as tremen2ously /ene1ite2 1rom t3e lass /ottles pro2uction4 No6 t3e /etter an2 t3e neer alternati-es are comin in t3e pac'ain in2ustry 3ic3 is i-in tou3 competition to t3e ell8esta/lis3e2 tren2 o1 lass as a pac'ain material4 T3e /ene1its an2 a2-antaes o1 t3ese upcomin alternati-es are compellin t3e ort3o2o, in2ustry an2 c3allenin t3em to c3ane t3eir /usiness stratey4 T3e option a-aila/le it3 A0anta is eit3er to 2i-ersi1y t3eir port1olio an2 to enter manu1acture polyet3ylene terep3t3alate (P+T) or to continue it3 t3e current pro2uction4 A1ter 2oin t3e analysis an2 consi2erin possi/le scenarios /ase2 on t3e mar'et s3are o1 t3e company6 rot3 prospects o1 t3e company an2 pac'ain tren2s in t3e in2ustry6 recommen2ation is i-en4 Recommendation$ A0anta s3oul2 2i-ersi1y its port1olio so as to cater to t3e roin customers5 2eman2 in t3e P+T in2ustry4 Proper mar'etin an2 1inancial strateies s3oul2 /e implemente2 /e1ore actually start pro2ucin P+T /ottles4
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%ontents .ituation Analysis
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Pro/lem .tatement
;ptions
Criteria 1or +-aluation
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+-aluation o1 ;ptions
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7ecommen2ation
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Action Plan
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"itation &nal#sis T3e recent reports pu/lis3e2 on t3e lass pac'ain in2ustry ill ma'e a 3ue impact on t3e in2ustry as a 3ole4 .ince A0anta Pac'ain mainly operates in lass /ottles6 t3is report
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s3oul2 /e loo'e2 a1ter as a concern an2 neer strateies nee2 to /e 1orme2 so as to maintain its current position in t3e in2ustry4 Currently6 t3e lass8/ottle pac'ain in2ustry is 1acin tou3 competition 1rom -arious pac'ain options an2 su/stitutes a-aila/le4 Currently6 lass pac'ain is 1or larer companies= 3oe-er6 >uality conscious customers are loo'in 1or ot3er options as ell4 Aest3etics is one o1 t3e roin 2i11erentiatin 1actors 3ic3 e-ery customer ants4 .o1t 2rin's an2 3ar2 2rin's in2ustry is s3i1tin 1rom lass /ottles to polyet3ylene terep3t3alate (P+T) an2 t3ere is risin use o1 tetra pac' as en2 users are more aare o1 t3e /ene1its o1 >uality pac'ain4 .W;T analysis 1or company is as 1ollos 8
"' &nal#sis
Strengths
$4 It is consi2ere2 as one o1 t3e top suppliers o1 t3e lass /ottles in t3e country4 4 A0anta Pac'ain 3as a stron 2istri/ution netor'4 ?4 It le-eraes its a2-antae o1 /ein a-aila/le at -arious locations4 !4 It also e,cels in customi@a/le an2 timely 2eli-ery o1 lass pac'ain solutions4 94 It o11ers 0ust in time supply to /uyers t3rou3 t3eir mar'etin o11ices present in Nort3ern In2ia4 4 A0anta is also 'non 1or its superior >uality an2 cost e11ecti-eness o1 its pro2ucts4 %4 Almost # o1 A0anta5s customers are repeat /uyers 3ic3 s3o A0anta is -ery relia/le in pro-i2in its ser-ice4
Weaknesses
$4 Too muc3 relia/ility on lass pro2ucts as A0anta5s 9 per cent re-enues is 1rom lass /ottle sales4 4 ;peratin e,penses are continuously increasin o-er t3e years4 ?4 Pro1ita/ility is 2ecreasin /ecause o1 risin e,penses an2 price sensiti-ity in t3e in2ustry4
Opportunities
$4 T3e rot3 rate o1 pac'ain in2ustry in In2ia is staerin $9 per cent annually4 ;n t3e ot3er 3an26 lo/al pac'ain in2ustry is roin at a CAG7 o1 meare ?4$ per cent4 4 Buyers are loo'in 1or 1le,i/le an2 alternati-e pac'ain solutions 1or t3eir pro2ucts4 ?4 Consumption o1 In2ian mi22le class is roin rapi2ly 3ic3 in turn is responsi/le 1or reater prospects in t3e pac'ain in2ustry4
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!4 Wit3 In2ian people ettin more ur/ani@e26 t3eir necessities 3a-e c3ane2 immensely 3ic3 can /oost sales especially in In2ian ma2e *orein i>uor (I*) an2 so1t 2rin's in2ustry4
Threats
$4 T3ere are -arious su/stitutes a-aila/le 1or A0anta5s lass /ottle pro2ucts suc3 as P+T4 4 T3e mar'et 1or P+T /ottle is roin 3ic3 is responsi/le 1or 2ecreasin scope 1or lass /ottle in2ustry4 ?4 T3e competition in t3e lass /ottle pac'ain in2ustry 3as increase2 tremen2ously as t3e 2eman2 1or lass /ottles is ettin re2uce24 !4 Due to t3e increase in in1lation rate6 A0anta5s ra material costs are increasin an2 t3at is e-i2ent 1rom t3e roin e,penses o-er t3e years4 94 T3e Central Go-ernment5s policy o1 re2ucin t3e import 2uties on ine an2 spirits 1rom $9# per cent to 9# per cent oul2 e-entually re2uce t3e mar'et 1or pac'ain in2ustry in In2ia4 4 T3e p3armaceutical in2ustry in In2ia 2ue to -arious reasons is rapi2ly turnin 1rom lass /ottle pac'ain to ot3er su/stitutes suc3 as plastic6 aluminium6 P+T6 etc4
Problem "tatement W3et3er it is t3e ri3t time to ta'e up 2i-ersi1ication o1 company5s pro2uct rane it3 a ne pro2uct port1olio o1 P+T /ottles
*tions $) Ees6 it is ri3t time to ta'e up t3e 2i-ersi1ication o1 pro2ucts rane it3 P+T /ottles4 ) No6 it is not t3e ri3t time to ta'e up t3e 2i-ersi1ication o1 pro2ucts rane it3 P+T /ottles4
%riteria +or E!alation T3e options 3a-e /een e-aluate2 on t3e /asis o1 1olloin criteria in 2escen2in or2er o1 importance4 T3e ran'in o1 criteria is /ase2 on t3e 1irm5s mission statement 3ic3 1ocuses on its clients6 people an2 sta'e3ol2ers4 a) Grot3 prospects o1 Company /) Pac'ain tren2s c) ar'et .3are
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E!alation o+ *tions 1, -es. it is ri/ht time to tae * the di!ersi+ication o+ *rodcts ran/e with PE bottles, a)
in2ustry6 company5s re-enues are also increasin 1rom t3e past 9 years4 Foe-er6 t3e operatin pro1it o1 t3e company remains aroun2 to an a-erae o1 !4< million4 T3is is /ecause company5s 9 per cent o1 sales re-enue is solely 2epen2ent on t3e lass8/ottle sales4 To increase t3e re-enue an2 3ence operatin pro1its6 2i-ersi1ication to ne pro2uct port1olio is re>uire2 at t3is time4 Also6 t3e P+T /ottle mar'et is roin at a rate o1 4 per cent an2 3ence it is t3e ri3t time to b)
2i-ersi1y4 Paca/in/ rends$ T3e pac'ain tren2s in -arious sector is s3i1tin 1rom tra2itional lass pac'ain to ot3er mo2es o1 pac'ain out o1 3ic3 P+T /ottles is emerin in pac'ain o1 most o1 popular pro2ucts suc3 as .o1t Drin's6 I* an2 P3armaceuticals4 By intro2ucin ne pro2uct 2i-ersi1ication o1 P+T /ottles6
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company can meet t3e c3anin pac'ain re>uirements4 Maret "hare $ By intro2ucin ne pro2uct port1olio o1 P+T /ottles6 t3e company can taret t3e customers 3o are s3i1tin to P+T /ottles4 Ac>uirin ne customer /ase ill increase t3e mar'et s3are o1 t3e company in t3is sector4
2, No. it is not the ri/ht time to tae * the di!ersi+ication o+ *rodcts ran/e with PE bottles, a) rowth *ros*ects o+ %om*an#$ By not intro2ucin t3e ne pro2uct port1olio o1 P+T
/ottles6 company5s 9 per cent o1 sales re-enue may 2epen2 on t3e lass8/ottle sales only4 T3is may 3amper t3e c3ance to enerate re-enue out o1 increasin 2eman2 o1 P+T /ottles in t3e mar'et an2 3ence may a11ect t3e rot3 prospects o1 company4 Currently6 company is eneratin consi2era/le re-enue out o1 lass8/ottles /ut t3ere is no sini1icant increase in t3e operatin pro1its an2 similar tren2s may 1ollo in near 1uture i1 pro2uct 2i-ersi1ication is not 2one no4
b) Paca/in/ trends$ T3e lass8/ottle in2ustry is 2epen2ent on ma0or in2ustries usin lass
/ottles suc3 as I*6 so1t 2rin's an2 p3armaceutical companies6 3ic3 are no mo-in 7
toar2s more 2ura/le pac'ain suc3 as P+T /ottles4 By not intro2ucin ne pro2uct port1olio o1 P+T /ottles6 company may lose customer pre1errin t3e ne pac'ain tren2s4 c) Maret "hare$ By continuin t3e lass8/ottle pac'ain6 t3e company5s mar'et s3are in
pac'ain in2ustry is less li'ely to increase since t3e pac'ain in2ustry is itsel1 mo-in toar2s ne pac'ain alternati-es4
Recommendation It is recommen2e2 t3at company s3oul2 no 2i-ersi1y t3e pro2uct rane it3 ne pro2uct port1olio o1 P+T /ottles4
&ction Plan $4 A0anta Pac'ain s3oul2 ac>uire all t3e necessary resources to 4 Ne pro2uct5s 1inancial analysis is to /e 2one /e1ore in-estin in t3e ne pro0ect so t3at it may not turn out to /e a loss ma'in in-estment4 ?4 ar'etin stratey nee2s to /e implemente2 to increase t3e aareness o1 ne pro2uct in t3e pac'ain in2ustry4 Increase2 aareness ill 3elp in creatin 2eman2 o1 t3e company5s P+T /ottles an2 3ence ill enerate consi2era/le sales re-enue4 !4 A0anta s3oul2 start t3eir P+T /ottles sales it3 t3eir e,istin customers an2 s3oul2 also ac>uire ne customers usin t3eir current customer relations3ip manaement e,pertise4 An2 since t3e customer retention o1 A0anta5s pro2ucts is oo2 it s3oul2 use t3is as t3eir 2i11erentiatin 1actor o-er t3eir competitors a1ter enterin into P+T /ottle pac'ain in2ustry4
